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Press Release: GoPro Announces Fourth Quarter and -2-

· 02/04/2021 16:05
GoPro, Inc. Preliminary Condensed Consolidated Statement of Operations (unaudited) Three months ended December 31, Year ended December 31, (in thousands, except per share data) 2020 2019 2020 2019 Revenue $357,772 $528,345 $891,925 $1,194,651 Cost of revenue 221,689 326,520 577,411 781,862 Gross profit 136,083 201,825 314,514 412,789 Operating expenses: Research and development 27,515 31,679 131,589 142,894 Sales and marketing 38,535 58,158 151,380 206,431 General and administrative 14,678 15,888 68,364 65,797 Total operating expenses 80,728 105,725 351,333 415,122 Operating income (loss) 55,355 96,100 (36,819) (2,333) Other income (expense): Interest expense (5,483) (5,197) (20,257) (19,229) Other income (expense), net (5,343) 989 (4,881) 2,492 Total other expense, net (10,826) (4,208) (25,138) (16,737) Income (loss) before income taxes 44,529 91,892 (61,957) (19,070) Income tax expense (benefit) 116 (3,928) 4,826 (4,428) Net income (loss) $44,413 $95,820 $(66,783) $(14,642) Net income (loss) per share Basic $0.29 $0.65 $(0.45) $(0.10) Diluted $0.28 $0.65 $(0.45) $(0.10) Weighted-average number of shares outstanding: Basic 150,663 146,625 149,037 144,891 Diluted 156,464 147,052 149,037 144,891 GoPro, Inc. Preliminary Condensed Consolidated Balance Sheets (unaudited) December 31, December 31, (in thousands) 2020 2019 Assets Current assets: Cash and cash equivalents $ 325,654 $ 150,301 Restricted cash 2,000 -- Marketable securities -- 14,847 Accounts receivable, net 107,244 200,634 Inventory 97,914 144,236 Prepaid expenses and other current assets 23,872 25,958 Total current assets 556,684 535,976 Property and equipment, net 23,711 36,539 Operating lease right-of-use assets 31,560 53,121 Intangible assets, net and goodwill 147,673 151,706 Other long-term assets 11,771 15,461 Total assets $ 771,399 $ 792,803 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 111,399 $ 160,695 Accrued expenses and other current liabilities 113,776 141,790 Short-term operating lease liabilities 9,369 9,099 Deferred revenue 28,149 15,467 Total current liabilities 262,693 327,051 Long-term debt 218,172 148,810 Long-term operating lease liabilities 51,986 62,961 Other long-term liabilities 22,530 20,452 Total liabilities 555,381 559,274 Stockholders' equity: Common stock and additional paid-in capital 980,147 930,875 Treasury stock, at cost (113,613) (113,613) Accumulated deficit (650,516) (583,733) Total stockholders' equity 216,018 233,529 Total liabilities and stockholders' equity $ 771,399 $ 792,803 GoPro, Inc. Preliminary Condensed Consolidated Statement of Cash Flows (unaudited) Three months ended Year ended December December 31, 31, (in thousands) 2020 2019 2020 2019 Operating activities: Net income (loss) $44,413 $95,820 $(66,783) $(14,642) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 3,570 6,445 19,065 26,268 Non-cash operating lease cost 1,658 (609) 6,565 6,990 Stock-based compensation 8,037 7,028 29,963 37,188 Deferred income taxes 1 (45) (50) (32) Non-cash restructuring charges -- -- 5,242 (199) Impairment of right-of-use assets -- -- 12,460 -- Non-cash interest expense 3,018 2,354 10,366 8,987 Loss on extinguishment of debt 5,389 -- 5,389 -- Other 334 (403) 1,072 (1,182) Net changes in operating assets and liabilities 39,833 (22,339) 70,493 (87,822) Net cash provided by (used in) operating activities 106,253 88,251 93,782 (24,444) Investing activities: Purchases of property and equipment, net (321) (2,038) (4,881) (8,348) Purchases of marketable securities -- -- -- (43,636) Maturities of marketable securities -- 5,150 14,830 56,888 Sale of marketable securities -- 15,978 -- 17,867 Asset acquisition -- -- (438) -- Net cash provided by (used in) investing activities (321) 19,090 9,511 22,771 Financing activities: Proceeds from issuance of common stock 1,927 -- 5,435 5,574 Taxes paid related to net share settlement of equity awards (1,494) (820) (6,207) (6,618) Proceeds from issuance of 2025 convertible senior notes 143,750 -- 143,750 -- Payment of debt issuance costs (4,752) -- (4,752) -- Purchase of capped calls related to 2025 convertible senior notes (10,249) -- (10,249) -- Payments for 2022 convertible senior notes partial repurchase (56,000) -- (56,000) -- Proceeds from borrowings -- 20,000 30,000 20,000 Repayment of borrowings -- (20,000) (30,000) (20,000) Net cash provided by (used in) financing activities 73,182 (820) 71,977 (1,044) Effect of exchange rate changes on cash, cash equivalents and restricted cash 1,669 764 2,083 923 Net change in cash, cash equivalents and restricted cash 180,783 107,285 177,353 (1,794) Cash, cash equivalents and restricted cash at beginning of period 146,871 43,016 150,301 152,095 Cash, cash equivalents and restricted cash at end of period $327,654 $150,301 $327,654 $150,301

frequent product introductions (including roadmap for new hardware, software and subscription products) and transitions, including managing our sales channel and inventory, and accurately forecasting future sales; the fact that a small number of retailers and distributors account for a substantial portion of our revenue and our level of business with them could be significantly reduced due to retail closures related to COVID-19; our transition away from some distributors and retailers; our reliance on third party suppliers, some of which are sole source suppliers, to provide components for our products; our reliance on third party logistics partners to deliver without interruption; our dependence on sales of our cameras, mounts and accessories, and subscription services for substantially all of our revenue (and the effects of changes in the sales mix or decrease in demand for these products); the fact that an economic downturn or economic uncertainty in our key U.S. and international markets, as well as fluctuations in currency exchange rates, may adversely affect consumer discretionary spending; any changes to trade agreements, trade policies, tariffs, and import/export regulations; the effects of the highly competitive market in which we operate, including new market entrants; the fact that we may not be able to achieve revenue growth or profitability in the future; risks related to inventory, purchase commitments and long-lived assets; difficulty in accurately predicting our future customer demand; the importance of maintaining the value and reputation of our brand; the risk that the e-commerce technology systems that give consumers the ability to shop online do not function effectively; the risk that we will encounter problems with our distribution system; the threat of a security breach or other disruption including cyberattacks; the concern that our intellectual property and proprietary rights may not adequately protect our products and services; and other factors detailed in the Risk Factors section of our Annual Report on Form 10-K for the year ended December 31, 2019, and Quarterly Report on Form 10-Q for the quarter ended September 30, 2020, each of which is on file with the Securities and Exchange Commission (SEC), and as updated in future filings with the SEC including the Annual Report on Form 10-K for the year ended December 31, 2020. These forward-looking statements speak only as of the date hereof or as of the date otherwise stated herein. GoPro disclaims any obligation to update these forward-looking statements.

GoPro, Inc.

Reconciliation of Preliminary GAAP to Non-GAAP Financial Measures

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February 04, 2021 16:05 ET (21:05 GMT)